Ethereum is getting a lot of attention in recent times, and many people expect the price pet Ether to go well beyond its current price point. However, it remains to be seen whether or not that can ever happen, as the project is still in its very early stages right now. That being said, various projects built on top of the Ethereum blockchain are capturing the imagination of community members around the world. Most of the focus will remain on the Ethereum price though, as that it what most people seem to care about right now.
Heavy Focus On Ethereum Price Point
As exciting as the Ethereum technology may be – distributed autonomous organizations, smart contracts, and what else is yet to come – most people only care about the current price. This is not an uncommon scenario in the digital currency world, though, as everything seems to revolve around how to make money, regardless of innovation.
But it has to be said how the Ether currency has created an interesting paradigm across multiple exchange platforms. Before ETH started gaining any traction, most of the alternative currency exchanges were seeing very little trading volume. That situation has come to a change, which creates an exciting paradigm for nearly every exchange platform in the digital currency space.
Cryptocompare CEO Charles Edward Hayter seems to agree:
“Ethereum trading has given second life to a number of exchanges with Poloniex dominating the Crypto Trading and Kraken the fiat trading. The interesting change has been the market share of fiat trading pairs to bitcoin with ethereum trading. Before the recent rises when volume was 5,000 BTC per day the market share of bitcoin trading was 94%. Fiat trading directly into Ethereum is rising to over 12% of the market.“
While all of this positive attention on the Ethereum price can create a lot of new investment opportunities, people should never throw their money blindly at a project that is doing quite well in recent months. Growth is a very beautiful thing where digital currency is concerned, but doing your own research is invaluable in this business.
CoinGecko Co-Founder Bobby Ong sees it as follows:
“Ethereum seems to have found trading support at US$10/ETH. We at CoinGecko are watching Ethereum price very closely and are wondering if this will be the story of the year for 2016. We would put a non-trivial probability of Ethereum repeating Litecoin’s feat in late-2013 where it went from US$10/LTC to over US$50/LTC at its peak. There is also a non-trivial probability that all the early buyers of Ethereum would cash out from their 50x positions soon and precipitate a price collapse. As always, do your research, trade with extreme care and do not trade on money you are not willing to lose.”
Very solid advice to say the last. As mentioned by Charles Edward Hayter, there has been an exponential growth across exchange as far as Ethereum is concerned. However, the points made by Bobby Ong serves as a warning for traders to not get overexcited at this stage. These are exciting times for sure, but there are no certainties or guarantees in this world.
Source: News tip via email
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